Streaming Services Consumer Behaviour: A Netflix User Case Study in Brazil and Portugal Alan Oliveira1 a, Ana Azevedo2 b and Selma Maria da Silva3 c 1Instituto Federal de Goiás, Anápolis-GO, Brazil 2CEOS.PP / ISCAP / P.PORTO, São Mamede de Infesta, Portugal 3Instituto Federal de Goiás, Anápolis-GO, Brazil Keywords: e-Commerce, Netflix, Consumer Behavior. Abstract: The development of the Internet in the 1990s favoured the emergence of electronic commerce. Since then streaming services have been gaining space. Netflix is currently leading the way. In Brazil and Portugal, the company's popularity is noticeable. Thus, the aim of this study is to understand the behaviour of Netflix consumers in both countries. The research methodology used in this study is classified as a case study. The data collection was through a digital questionnaire made available to the Brazilian and Portuguese public, which generated a non-probabilistic sample. The valid answers of this sample (210 Brazilians and 38 Portuguese) were analysed in a quantitative-qualitative approach using descriptive statistics and content analysis. The results indicate that in both countries, women are the majority as Netflix clients, are relatively young and have a higher level, however, Portuguese have a higher income than Brazilians. Brazilians use Netflix longer than the Portuguese, before purchasing the company's services, users in both countries consumed audio-visual works through Open TV and Pay TV. Influenced Netflix membership, family members of clients in Brazil and friends of clients in Portugal. The most watched content in both countries is a series, and the action genre is preferred by users, who watch the works on weekends, via broadband, through Smart TV. The levels of customer satisfaction in both countries are high, never had problems with the company and would indicate it to other people. 1 INTRODUCTION cell phones, notebooks, desktops, tablets and televisions (Lima, 2015). Advances in the Internet have transformed the audio- In this respect, Netflix stands out in the world context visual industry, bringing about changes in the way as the largest provider of films and television series consumers acquire and enjoy new film and TV via streaming. Founded by Reed Hastings (1960-) and content. The changes were made possible by the use Marc Randolph (1958-) in August 1997, in the city of of a new technology called streaming, a service for Scotts Valley in Silicon Valley, USA, the company online distribution of multimedia content. As emerged as a DVD rental service by mail. Netflix Dall'Orto & Silva (2017) point out, streaming is a tool made the movie titles available on its institutional for reception and transmission of content, through the website. The subscriber accessed the company's Internet, which grows exponentially in the website and chose the film. The receipt and return of entertainment market. The technology becomes more the DVDs were done via post. In 1999 the company popular every day, offering the consumer a adopted the subscription system with unlimited rents. multiplicity of content in real time. With it, The absence of a determined time for the return of the consumers can buy services online and watch movies DVDs was a success, as it brought more flexibility to and series at any time through screen devices such as the user. In 2007 the company used the streaming technology per monthly subscription, making a https://orcid.org/0000-0002-2380-9836 b https://orcid.org/0000-0003-0882-3426 c https://orcid.org/0000-0002-0874-2004 173 Oliveira, A., Azevedo, A. and Maria da Silva, S. Streaming Services Consumer Behaviour: A Netflix User Case Study in Brazil and Portugal. DOI: 10.5220/0010014801730180 In Proceedings of the 17th International Joint Conference on e-Business and Telecommunications (ICETE 2020) - Volume 3: ICE-B, pages 173-180 ISBN: 978-989-758-447-3 Copyright c 2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved E-BDT 2020 - Special Session on E-Business and Digital Transformation millions of movies and series available to subscribers other activities, such as travel booking and online through the computer. Two years later the stock trading. (Turban et al., 2015). organization started to make its films and series Turban et al. (2015) mention that increasing available via TV, cell phones and tablets. (Saccomori, competitiveness in the market has placed as an 2015) imperative task for companies the understanding of In order to understand this new consumption customer needs and their consumption behaviour to behaviour of users of audio visual content offered influence them in the purchase of services and online, the research presented in this article will seek products. In this sense, the authors have developed to answer the following main question: What are the their own model of purchasing decision making differences (if any) in the profile and behaviour of process, arguing that this process usually starts with Brazilian and Portuguese consumers regarding the the awareness of the purchasing situation followed by use of the Netflix service? To answer this question, a positive attitude that ends with the consumer's the general objective is to understand the behaviour decision to buy and/or buy again. of consumers of Netflix services in Brazil and For Turban et al. (2015) the purchasing decision Portugal based on the models of consumption process is composed of the steps described following. behaviour and purchase decision proposed by Kotler a) Need for identification: for a purchase process & Keller (2012), Turban et al. (2015) and Laudon & to begin, the possible consumer must Traver (2017). The social relevance of this work lies recognise a need. This recognition can be in the understanding of the consumption behaviour of done in various ways, by internal stimuli users of film and TV services in the online mode. (hunger or thirst, for example) or by external The rest of this article consists of the theoretical stimuli (advertising). The task of the framework, where we work on theoretical supports marketing server, at this point, is to make the related to marketing, e-commerce, consumer consumer perceive a need and convince behavior and consumer buying decision process. him/her that a certain product or service will Following, the methodology, including our fill that need. theoretical and methodological apparatus for b) Search for information: after recognizing a conducting the research. The article continues with need, the prospective buyer will search for the results, where we apply the knowledge of our information on how to meet this demand. At bibliographic survey to understand the behavior of this moment, there are two decisions that can Brazilian and Portuguese consumers on Netflix. The be separated or combined: what to buy and article finishes with the conclusion. from whom. This being clear, the consumer will search in catalogs, advertisements, promotions and in reference groups - family, 2 THEORETICAL FRAMEWORK friends. Of course, online searches are also useful at this stage because of the Laudon & Traver (2017, p. 9) formally define e- comparison mechanisms they offer. commerce as a set of "digitally activated commercial c) Evaluation of alternatives: searches for transactions between organizations and between products and services indicate viable organizations and individuals". These transactions options. From these, the prospective buyer include all digitally-mediated operations that occur will evaluate the alternatives, perhaps also mostly on the Internet, the Web, and other mobile including term negotiations. At this stage, the devices. It should be clarified that the Internet and the buyer will create and organize criteria to World Wide Web are different structures. While the make its final choice. For online consumers, Internet is a worldwide network of computers, the the criteria may include prices and product Web is one type of Internet service, and one of the features. most popular because it allows access to billions of d) Purchase and delivery: After experiencing the virtual pages. (Laudon & Traver, 2017). three previous phases, the buyer will make In historical terms, Turban et al. (2015) place the the final choice of purchase. In this phase, first electronic commercial applications at the end of payment, delivery, purchase guarantees are the 1970s, when financial institutions transferred organized, among other factors. funds, electronically, among themselves. In this e) Post-purchase activities: this last phase context, Electronic Data Interchange (EDI) consists of customer service and its technology was used, which expanded to other types evaluation of the utility of the product. In of transactions, from which e-commerce evolved to case of customer satisfaction in these two 174 Streaming Services Consumer Behaviour: A Netflix User Case Study in Brazil and Portugal aspects, the purchasing experience will be The data was collected through an online survey positive and the consumer will tend to application implemented in Google Forms. The collaborate with the disclosure of the product questionnaire, about the use of Netflix services by and create the bond of loyalty, increasing the Brazilians and Portuguese, presented 31 (thirty-one) chances of repeating purchases of products questions. Of these, 26 (twenty-six) were open and 5 of the brand acquired. (five) closed. This questionnaire was disclosed to the Laudon & Traver (2017) also present a model of Brazilian and Portuguese public for